Feasibility Analysis Of Importing Flexible Metal Tube Equipment

The paper is to fulfill the feasibility analysis task of well-appointed equipment proposed by company management, based on economic engineering knowledge, tools and theory of feasibility analysis and the analysis of flexible metal tube technology and equipment compared with current company's equipment made by company itself for many years, which is not satisfied customer's higher and higher technology specification requirement.First of all, this paper states the exiting condition of domestic and over-sea flexible metal tube technology and equipment as well as new technology developing trend in flexible metal tube industry. The feasibility of equipment imported derives from consideration of technology, market demand, market forecast, project scale, budget, cost, price, profit, etc. The economic evaluation applied into this paper is dynamic economic evaluation factors: net present value (NPV), internal rate of return (IRR), and investment payoff period dynamic. After the first step equipment supplier assessment, Showa Denko Flexible Metal Tube Group (proposal A) and WAFIOS Machinery Corporation (proposal B) are in our focus supplier list. After calculated above three factors, both two proposals are feasibility in economic in our investment payoff period target. But when we compared these two proposals'NPV and IRR, we found that NPV B> NPV A,IR RB > IRR A, and investment payoff period dynamic of proposal A is longer than proposal B, so proposal B is better than proposal A. Finally we ordered Germany WAFIOS equipment.This paper provided useful support to our company management's decision-making, which covers issues- whether to import an equipment from oversea or not and how to import an equipment, and changed our company investment decision-making process used to depending on personal assumption, not on scientific and reasonable study. Project feasibility study controlled investment risk and avoided investment lost as well.